EIA Natural Gas Storage Report 05-18-23
Summary
Working gas in storage was 2,240 Bcf as of Friday, May 12, 2023, according to EIA estimates. This represents a net increase of 99 Bcf from the previous week
Analyst expected today’s EIA weekly storage report to show an injection at about 106 Bcf.
Stocks were 521 Bcf higher than last year at this time and 340 Bcf above the five-year average of 1,900 Bcf. At 2,240 Bcf, total working gas is within the five-year historical range.
The 12- and 24-month natural gas strip prices increased slightly from last week, settling at $3.060/Dth (up 4.90%) and $3.426/Dth (up 2.51%) respectively.
Gas utilities have announced more than three dozen hydrogen pilot projects across the US as the industry continues to explore the fuel’s potential to decarbonize distribution systems. Gas utilities have announced at least 22 pipeline blending projects through April 2023, blending low- or zero-carbon hydrogen with natural gas into pipeline networks. Pipeline blending can reduce the carbon intensity of the nation’s gas grids because hydrogen does not release CO2 during combustion.
The current chilly air mass in place across the Midwest and East will modify some over the next day or so before another cool front brings below-normal temperatures this weekend and early next week. Another weak cool front will move through the middle of next week, followed by a round of above-normal temperatures later next week across the Plains and Midwest. In the West, a strong ridge will keep above to much above normal temperatures in place across the Northwest, Rockies and Desert Southwest through the remainder of the month; prompting strong melting and high river flows.
In the week to May 12, warming temperatures in the Northeast and the Midwest slashed U.S. residential-commercial gas demand. With relatively mild spring weather still in play across Texas and the Southeast, domestic power burn demand ticked up only slightly during the week, leaving more supply available for injection to storage.
The EIA latest forecast is targeting end-of-season inventories at 3.76 Tcf (3.6% over the 5-year average), a slight tick down from April’s 3.8 Tcf forecast. Independent analysts are coming in closer to 3.8 – 3.9 Tcf.
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